Building a Multi-Institution Bitcoin Custody Platform: A Step-by-Step Guide to Scaling Institutional Trust

Introduction

Institutional investors face a critical dilemma when storing bitcoin: rely on a single custodian with counterparty risk or manage self-custody with steep technical demands. The emerging solution is multi-institution custody (MIC)—a model that distributes key control across several regulated entities to eliminate single points of failure. Onramp, a bitcoin financial services firm, recently raised $12.5 million in Series A funding to scale this exact approach. This guide walks through the key steps, as demonstrated by Onramp's journey, to build and scale a multi-institution bitcoin custody platform that meets institutional standards.

What You Need

• Regulated custodians: At least three established firms (e.g., BitGo, Coincover, Tetra Trust) willing to partner on shared key control across jurisdictions.
• Multi-party computation (MPC) technology: Cryptographic infrastructure to split and distribute private keys among custodians.
• Legal and compliance framework: Agreements governing joint custody, liability, and jurisdiction-specific regulations.
• Initial capital: Seed funding for platform development, partnerships, and operational runway (e.g., $5–10 million).
• Technical team: Engineers experienced in bitcoin core, custody protocols, and API integration.
• Sales and partnership network: Connections to banks, registered investment advisors (RIAs), and fintech firms.

Step-by-Step Guide

Step 1: Design a Multi-Institution Custody (MIC) Model

Start by architecting a custody model that distributes key control across several regulated custodians rather than relying on a single entity or handing full responsibility to clients. Onramp’s MIC model, for example, uses shared control structures that can span jurisdictions. The core principle: no single custodian holds the complete private key, and clients retain on-chain verifiability. Define how keys are split—typically using MPC or threshold signatures—and establish procedures for signing transactions only when a quorum of custodians agrees. Document the tradeoffs you’re addressing: centralized platforms carry counterparty risk; self-custody requires technical expertise. MIC removes single points of failure while keeping assets transparent on the blockchain.

Step 2: Partner with Regulated Custodians

Identify and onboard multiple regulated custodians that meet institutional compliance standards. Onramp built partnerships with BitGo, Coincover, and Tetra Trust to enable shared control across different regulatory environments. Negotiate contractual agreements that define each party’s role in key management, transaction approval, and liability distribution. Ensure each custodian is licensed in the jurisdictions you plan to operate—this builds trust with pension funds and policy groups. The goal is a network where no single custodian can unilaterally move funds, reducing systemic risk. Also, implement robust auditing and monitoring to record zero security incidents, as Onramp has done since 2023.

Step 3: Build a Full Financial Stack Around Bitcoin

Expand beyond custody to offer a complete suite of bitcoin financial services. Onramp launched Onramp Finance in April, providing brokerage services across all 50 states, cash accounts with rewards, a payments card, bitcoin IRAs, and access to gold within a single interface. Your platform should integrate lending, retirement accounts, treasury management tools, and cash management—everything institutions need to manage bitcoin alongside traditional assets. This full-stack approach differentiates your platform and increases client stickiness. Allocate engineering resources to build a seamless user experience while maintaining the underlying MIC security.

Step 4: Secure Institutional Clients and Endorsements

Target early adopters among pension funds, policy institutes, and RIAs. Onramp secured the UK pension fund Cartwright as a custodian for its bitcoin allocation and received endorsement from the Bitcoin Policy Institute for state-level bitcoin reserve frameworks. To replicate this, develop case studies showing zero security incidents and $1 billion+ assets under custody. Engage with policy groups and industry bodies to promote MIC as a standard. Offer white-label solutions for financial institutions that want to integrate bitcoin services without building custody themselves. This step validates your model and attracts larger institutional flows.

Step 5: Raise Strategic Capital to Scale

Pursue a Series A round led by investors who understand the infrastructure opportunity. Onramp raised $12.5 million from Early Riders at a $135 million valuation. Prepare a pitch that highlights your unique custody model, institutional traction, and path to building a full financial stack. Show metrics like assets under custody (over $1 billion) and security record (zero incidents). Use the capital to expand product development and distribution—split funding between engineering (e.g., licensing custody infrastructure to other custodians) and commercial efforts (sales team expansion, white-label partnerships). A strong investor like Early Riders can also open doors to traditional finance players.

Step 6: Expand Development and Distribution Channels

With funding in hand, execute on two fronts. On the engineering side, continue enhancing your platform’s capabilities—brokerage, custody tools, and user interface—while preparing your MIC infrastructure for licensing to other regulated custodians. This creates a new revenue stream and broadens your ecosystem. On the commercial side, expand sales efforts to banks, RIAs, and fintech firms. Develop white-label offerings that allow partners to offer bitcoin services under their own brand, leveraging your custody infrastructure. Onramp plans to do exactly this, aiming to make MIC the industry standard. Also, consider adding strategic advisors with traditional finance experience, like Onramp’s appointment of former Blackstone partner David Thayer, to strengthen institutional credibility.

Step 7: Establish Continuous Innovation and Governance

Finally, embed a culture of continuous improvement and governance. Onramp’s roadmap includes lending, retirement accounts, and treasury management tools—showing that custody is just the foundation. Regularly update security protocols to maintain zero incidents. Engage with regulators to ensure compliance across jurisdictions. Build an advisory board that includes infrastructure investing experts to guide expansion into traditional finance. Monitor industry trends, such as state-level bitcoin reserves, to position your platform as the go-to solution for multi-institution custody. The goal is to make MIC the default standard for institutional bitcoin adoption.

Tips for Success

• Prioritize security from day one: Onramp’s zero-incident record is a key selling point. Invest in robust MPC technology and regular third-party audits.
• Focus on on-chain verifiability: Institutions need to independently verify holdings. Ensure your platform provides transparent on-chain proofs without revealing key fragments.
• Build relationships early: Partner with regulated custodians and policy groups before you need them. These relationships accelerate trust and adoption.
• Think beyond custody: A full financial stack (brokerage, IRAs, lending) increases client lifetime value and differentiates you from competitors.
• Leverage white-label opportunities: Licensing your custody infrastructure to banks and fintechs can create a scalable revenue model and expand your reach.
• Monitor regulatory developments: Multi-jurisdictional custody requires staying ahead of evolving laws in each market. Engage legal experts with crypto specialization.